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The local authority showing the largest annual growth in the year to March 2017 was the Orkney Islands, where prices increased by 15.3 per cent to stand at £144,000.

However, low numbers of sales transactions in some local authorities, such as the Orkney Islands can lead to volatility.

Elsewhere, Knowsley, South Bucks, Hinckley and Bosworth and Salford were all areas which have seen double-digit price growth in the last 12 months.

On the flipside, the lowest annual growth was recorded in South Hams – an area between the South Devon town of Torquay and city Plymouth - where prices fell by 7.7 per cent to stand at £281,000.

Meanwhile, the City of London saw a 6.4 per cent fall and City of Aberdeen a 6.3 per cent drop in values.

Earlier in the month, Halifax said property prices fell 0.2 per cent between February and April marking the first quarterly fall since November 2012

Nationwide Building Society House showed property price inflation hit its slowest annual rate in nearly four years in April, with an 2.6 per cent year-on-year increase marked the weakest growth since June 2013.

Slowdown: The top chart shows how annual inflation is falling - and the bottom chart how house prices have increased in recent years

Evidence is mounting that housing market activity and prices are coming under increasing pressure

'Consequently, we expect house price gains over 2017 will be limited to no more than two per cent - and it could very well be lower than that.'

Mark Harris, chief executive of mortgage broker SPF Private Clients, says: 'The housing market in March was bound to be quieter compared with a year ago because back then investors and second homeowners were rushing to purchase in order to beat the stamp duty hike at the beginning of April.

'This year there is no such impetus to focus the mind, with the market ticking along as usual.

‘On the lending side, mortgage rates continue to be extremely competitive. The mortgage market is oversupplied in all areas - whether it is buy-to-let, owner occupier, second charge or development finance - there is a lot of supply out there.

'When supply and demand are out of kilter, it affects pricing and that is what we are seeing.'

Regional: The North East saw property prices fall in the last 12 months - while London values are up just 1.5%

According to the ONS data, the main contribution to the increase in house prices came from England, where house prices increased by 4.4 per cent over the year to March 2017, with the average price now £233,000.

Wales saw house prices increase by 4.3 per cent to stand at £148,000 while in Scotland, the average price increased by 0.7 per cent to £137,000.

The average price in Northern Ireland currently stands at £124,000, an increase of 4.3 per cent over the year to first quarter.